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mpc: 4 The movement in exchange rates had been against a backdrop of rising market interest rates in the United States and lower UK and euro-area market interest rate expectations. A natural explanation was that the depreciation of the dollar had been part of the reason for the changes in market interest rate expectations, rather than the other way round. But the changes were also broadly consistent with the economic data. The interest rate expected a year or so ahead, implied by short sterling futures contracts, had fallen by 20-25 basis points since the previous meeting. There had been a similar fall in the euro area. Long-term interest rates had also fallen in the United Kingdom and euro area, and risen in the United States.